Do you want to invest in the markets but cannot seem to find the money to do so? Are you not sure what it is you need to be invested in to begin with? Well, there is an app that makes investing about as easy as I have ever seen, and it costs very little on your part. The name of the app is Acorns, and I will explain how it works and why I think it is an excellent way for anyone to start saving some in the markets.
First, Acorns is linked to your bank account from which your investments will be made. Ideally, this is your checking account at your regular bank. Then you link your credit cards to the app as well. Then when you spend in your normal everyday lives, Acorns will round up the purchase to the next whole dollar and make the investment for you automatically. Now your credit card is not charged the roundup amount, but rather it comes out of your linked bank account which is why I suggest your checking account.
While setting up your Acorns account, you will answer some simple questions that will aid the app in determining your risk levels. If you are young, or this is not your only investment account, I suggest an aggressive investment strategy as you have time on your side, or it is purely discretionary investments to begin with. This is an example of an aggressive investment account in Acorns: Large Cap Stocks 14%, Small Cap Stocks 25%, Emerging Markets 20%, Government Bonds 5%, Corporate Bonds 6%, and Real Estate Stocks 30%. Not a bad portfolio to be honest. As you become more conservative, the portfolio balance will shift towards more bonds and Large Cap Stocks and away from real estate and emerging markets. They have a little something for everyone when it comes to investments.
Now I know you are wondering about fees and how much this neat service app costs you. Well, it is a dollar a month for accounts under $5,000 and 0.25% a year for accounts over $5,000. And if you are a student or under the age of 24 you invest for free which makes it an ever more attractive proposition for you. And that is all they charge. There are no trading commissions as they are cover by the fees, and the portfolio does not charge to rebalance either.
Investments are set to be made each time your round up balance reaches $5.00, so the investments occur on a regular basis. There also are no minimums required to open an account, and you can take your money out at any time. The app even allows you to set up reoccurring investments or set up a one-time investment as well.
Acorns is a great way to start saving for any reason as it is easy and painless to use. All you need to do is set it up, and you are then going to be investing on autopilot which makes it easy to do and again it is painless. I have used the app for over a month, and I have not even missed the amounts I have invested as they are just dollars and cents here and there taken in small doses.
Now all you need to do is download the app from your respective phone’s app store and follow the easy to follow steps, and you will be on your way to investing in the markets. And the best part is if you recommend Acorns to someone else they will give you a signing bonus so to speak. If you are interested in the Acorns app and would like to help me with my account, please email me your phone number at kirk@kirkgmeyer.com with Acorns in the subject line and I will send you the Acorns app link right to your phone.
As always if you have any questions or need any additional information, please contact me directly and I will do my best to address your concerns.
